United Natural Foods distribution center shutting down. 60 jobs lost in Logan
LOGAN - A food distribution firm that's seen profits plunge is closing a warehouse here.
United Natural Foods Inc. says 60 jobs will be lost with the shutdown of its Bridgeport Distribution Center.
The firm will move operations from the Commerce Boulevard facility about 90 miles to a distribution center outside Allentown.
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Workers at the South Jersey plant are not being offered jobs at the Pennsylvania site, UNFI said in a layoff notice filed with the state Department of Labor.
What went wrong at UNFI?
UNFI, a grocery wholesaler with almost 60 distribution centers nationwide and in Canada, is looking to cut costs after profits fell sharply in its latest quarter.
The firm last month said a regional restructuring of distribution operations would eliminate about 150 jobs, primarily in management or supervisory positions.
The Providence-based company in June reported net income fell by almost 90 percent to $7 million in the third quarter ended April 29.
The drop occurred despite a 3.7 percent gain in net sales, which reached $7.5 billion.
The firm, which cited ongoing challenges from inflation and supply-chain problems, reduced its full-year outlook for profits.
UNFI said it now expects annual income of $11 million to $41 million. That's compared to a previous estimate of $90 million to $140 million.
Other warehouses have closed
The company set a furlough date of Oct. 3 for its Logan plant, according to the WARN notice filed with the state labor agency.
It said laid-off workers would receive severance pay and may be eligible for outplacement assistance and health-care subsidies.
The shutdown is at least the third for a South Jersey warehouse in recent months.
Walmart in March announced the planned closing of a 201-worker warehouse in Pedricktown, Salem County.
And a Delanco grocery-delivery service in February announced plans to close a distribution center with 446 workers.
Misfits Market said its Coopertown Road facility was not needed after the acquisition last year of similar delivery firm, Imperfect Foods.
Jim Walsh is a senior reporter with the Courier-Post, Burlington County Times and The Daily Journal. Email him at jwalsh@cpsj.com.
This article originally appeared on Cherry Hill Courier-Post: United Natural Foods closing Logan distribution center
